Financial Market Reform and Skill-Intensive Industry Growth

43 Pages Posted: 28 Aug 2013 Last revised: 21 May 2014

See all articles by Gustav Martinsson

Gustav Martinsson

Stockholm University - Stockholm Business School; Stockholm School of Economics - Stockholm School of Economics - Swedish House of Finance, Students; Royal Institute of Technology (KTH) - Department of Industrial Economics and Management (INDEK)

Date Written: May 8, 2014

Abstract

Financial markets in most developed economies were open to foreign investors before 1980, yet these countries continued to reform their financial systems dramatically in subsequent decades. During the same time period, high-skill industries become increasingly important; for example, in the US high-skill business services now account for over 20% of GDP, more than double their share in the late 1970s. I link the domestic financial reforms of the 1980s and 1990s to the growth of high-skill industries in a broad sample of countries and unveil a previously unexplored channel linking financial reform to growth in already financially open and developed economies.

Keywords: Financial liberalization, Growth, Financial development, Capital account openness, Skill-biased technological change, Technological change

JEL Classification: F30, F43, G15, G18, J24, O30

Suggested Citation

Martinsson, Gustav, Financial Market Reform and Skill-Intensive Industry Growth (May 8, 2014). Swedish House of Finance Research Paper No. 13-04, Available at SSRN: https://ssrn.com/abstract=2317133 or http://dx.doi.org/10.2139/ssrn.2317133

Gustav Martinsson (Contact Author)

Stockholm University - Stockholm Business School

Albanovägen 18
House 2
Stockholm, 11419
Sweden

Stockholm School of Economics - Stockholm School of Economics - Swedish House of Finance, Students ( email )

111 60 Stockholm
Sweden

Royal Institute of Technology (KTH) - Department of Industrial Economics and Management (INDEK) ( email )

Stockholm, 100 44
Sweden

HOME PAGE: http://https://www.kth.se/profile/gusma

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